Non-locally switched services are services provided to a local subscriber from a distant (foreign) telephone exchange. Such services are in demand, for example, for businesses which are located remote from a city and which wish to have a telephone number which is a local number for customers in that city. Prior art arrangements for such non-locally switched services require a direct connection from the foreign exchange to the premises of the customer. Typically, telephone exchanges are not equipped to handle subscriber connection lines which are much longer than normally anticipated for local services connections are commonly made via long distance trunks extending between exchanges, which are treated quite differently from lines in the exchange. One prior art foreign exchange arrangement consists of a connection from a subscriber connection line output of the exchange to special equipment connected to a transmission carrier system which transmits signals over a channel, fully dedicated to the foreign exchange line. Additional special equipment is needed at the other end of the carrier to provide an interface between the long distance carrier and a terminal on the customer's premises. The special equipment connecting to the customer premises is required to provide certain functions normally performed by an exchange, such as detecting off-hook and providing ringing current for alerting the subscriber. Such special equipment which duplicates exchange functions represents an additional expense. Furthermore, the prior art arrangement requires a separate subscriber line for the foreign exchange connection, which is in addition to the subscriber line normally provided to customer premises for local services. A subscriber desiring foreign exchange service from more than one distant exchange has to have a separate foreign exchange line for each such connection. A significant problem of the prior art is the substantial cost of the special equipment needed to provide a customer with foreign exchange telephone service.